Air Busan (BX, Busan) has dusted off plans to pursue an IPO roughly a month after rival Jeju Air (7C, Jeju) raised KRW105 billion (USD91.6 million) on its debut on the KRX (Korea Exchange).
An airline spokesman told the Korea Herald the Asiana Airlines (OZ, Seoul Incheon) subsidiary board discussed possible underwriters for an IPO it hopes to complete by the end of next year. The LCC is looking to raise at least KRW100 billion (USD86.3 million) in fresh capital needed to acquire new aircraft.
According to the spokesman, Air Busan's fleet currently consists of fifteen aircraft (three A320-200s, seven A321-200s, four B737-400s, and one B737-500) all of which are leased.
Owned by Asiana Airlines (46%), a consortium of local companies including Seun Steel and Nexen Corp. (49%), and the city of Busan (5%), Air Busan has been profitable since its founding in 2010. However, despite its strong performance, the board was last year unable to convince all shareholders of the merits of going public resulting in it being shelved.
